LG Philips LCD, the world's second largest liquid crystal display maker, on Wednesday said it would invest Won5,300bn ($5.1bn) to build a seventh-generation plant producing 47-inch flat-screen televisions and monitors.

In spite of a looming glut in flat screen production and weak sales of the expensive screens, which has prompted some Taiwanese rivals to delay or stop construction of new plants, LG Philips is continuing to pour billions into creating more capacity.